The subject says it all dunno why it does this, but it does,
To fix this, a backspace mapping should be added to the keybindigns list,
and then the
*VT100*backarrowKey: false
line can be removed from /usr/X11R6/lib/X11/app-defaults/XTerm
The line to be added to the keybindings is:
<Key>BackSpace: string(0x7f) \n\